AirTran's fate in Huntsville unknown with proposed purchase by Southwest

View full sizeMichael Mercier / The Huntsville TimesAirTran launched service from Huntsville International Airport to airports in Baltimore, shown here, and Orlando on May 27.

HUNTSVILLE, AL - Two weeks after a warning that Huntsville International Airport could lose low-fare carrier AirTran Airways, a competing low-fare carrier that has never served Huntsville announced plans Monday to buy AirTran.

Whether Southwest Airlines will continue service in Huntsville after it takes over AirTran next year is unclear, airport spokeswoman Laura Gipson said Monday afternoon.

"I'm sure there will be an evaluation process," Gipson said.

The proposed $3.4 billion deal comes four months after AirTran began offering nonstop low fare flights between Huntsville and Baltimore and Orlando.

AirTran serves nearly 30 destinations that Southwest does not, Gary Davis, Southwest chairman, president and chief executive officer, said Monday morning during a news conference that was streamed live on the Internet.

Huntsville is among those destinations. Southwest serves Birmingham and Nashville, but has never served Huntsville.

Gipson said that airport officials don't know what the merger means for the future of low-fare carrier service here.

"It's too early to speculate," she said.

Gipson said it was months after the Delta and Northwest merger was announced before the effects on Huntsville were known.

The airlines' two daily nonstop flights between Washington/Baltimore International Airport were 44.4 percent full in August and the one daily nonstop flight between Huntsville and Orlando International Airport was 52.9 percent full.

AirTran began a one-year contract to serve Huntsville on May 27.

"It's imperative now more than ever for the community to support the low-fare carrier," Gipson said.

The airport received a $1 million federal transportation grant to help market the low-fare carrier. About $364,000 of the grant has been used, Gipson said.

Gipson said she didn't think any unused grant money would have to be returned to the Federal Aviation Agency when Southwest takes over AirTran as long as the grant requirements are met.

The airport is also waiving about $1.5 million in landing fees for AirTran.

The city routed $2 million through the city Industrial Development Board for AirTran to draw down on to cover it's operating losses. Almost $1.5 million of the money has been paid to AirTran.

Charlie Younger, the board's attorney, said he didn't think the IDB's obligation would change if the low-fare carrier is sold.

Davis said acquiring AirTran will expand Southwest's route network by 25 percent, including Atlanta and smaller markets, and bring low fares to more people. The merger could save customers $100 million, he said.